Are bank fees subject to 1099-MISC reporting?


In most cases, banks are incorporated. Most payments to corporations are exempt from 1099 reporting (exceptions being attorney payments and payments for medical services). If your bank is incorporated, then you would not report the processing fees on form 1099.

However, the instructions to form 1099-MISC state that service fees are reportable in box 7. On the rare chance that your bank is not a corporation, then you would report the value of those fees on a 1099 under box 7, provided they add up to $600 or more in a calendar year. See the IRS Instructions for Form 1099-MISC.

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